Capital World Investors Trims Stock Position in Synchrony Financial $SYF

Capital World Investors cut its stake in shares of Synchrony Financial (NYSE:SYF) by 2.6% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 38,326,315 shares of the financial services provider’s stock after selling 1,008,354 shares during the quarter. Capital World Investors owned 10.64% of Synchrony Financial worth $2,723,085,000 as of its most recent SEC filing.

Several other hedge funds have also modified their holdings of SYF. Bank of America Corp DE lifted its position in shares of Synchrony Financial by 34.6% during the 2nd quarter. Bank of America Corp DE now owns 13,595,381 shares of the financial services provider’s stock valued at $907,356,000 after acquiring an additional 3,494,741 shares during the period. Ameriprise Financial Inc. increased its position in Synchrony Financial by 8.3% during the second quarter. Ameriprise Financial Inc. now owns 5,307,077 shares of the financial services provider’s stock worth $354,194,000 after purchasing an additional 406,796 shares during the last quarter. Nordea Investment Management AB grew its position in Synchrony Financial by 7.9% during the third quarter. Nordea Investment Management AB now owns 4,542,336 shares of the financial services provider’s stock valued at $318,236,000 after acquiring an additional 333,093 shares during the period. Norges Bank acquired a new stake in Synchrony Financial during the 2nd quarter worth approximately $299,360,000. Finally, Assetmark Inc. raised its stake in shares of Synchrony Financial by 48.3% in the 3rd quarter. Assetmark Inc. now owns 4,349,059 shares of the financial services provider’s stock valued at $309,001,000 after acquiring an additional 1,416,909 shares during the period. 96.48% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Synchrony Financial

In other news, insider Brian D. Doubles sold 217,554 shares of Synchrony Financial stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $68.68, for a total value of $14,941,608.72. Following the transaction, the insider directly owned 829,222 shares of the company’s stock, valued at $56,950,966.96. This trade represents a 20.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Brian J. Sr. Wenzel sold 47,112 shares of the company’s stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $67.16, for a total transaction of $3,164,041.92. Following the completion of the sale, the insider owned 64,221 shares of the company’s stock, valued at approximately $4,313,082.36. This trade represents a 42.32% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 379,928 shares of company stock valued at $26,170,764. Corporate insiders own 0.33% of the company’s stock.

Synchrony Financial Stock Performance

NYSE:SYF opened at $67.15 on Tuesday. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.98. The company has a 50-day moving average of $75.70 and a 200-day moving average of $75.88. Synchrony Financial has a twelve month low of $40.54 and a twelve month high of $88.77. The firm has a market cap of $23.34 billion, a price-to-earnings ratio of 7.23, a price-to-earnings-growth ratio of 0.59 and a beta of 1.42.

Synchrony Financial (NYSE:SYF) last posted its quarterly earnings results on Tuesday, January 27th. The financial services provider reported $2.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.02 by $0.16. The company had revenue of $3.79 billion for the quarter, compared to analysts’ expectations of $3.84 billion. Synchrony Financial had a return on equity of 23.07% and a net margin of 15.72%.The firm’s revenue was down .2% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.91 earnings per share. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. Analysts forecast that Synchrony Financial will post 7.67 earnings per share for the current fiscal year.

Synchrony Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, February 17th. Shareholders of record on Friday, February 6th were issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 1.8%. The ex-dividend date was Friday, February 6th. Synchrony Financial’s payout ratio is presently 12.92%.

Analyst Ratings Changes

Several research firms recently issued reports on SYF. Truist Financial dropped their price target on shares of Synchrony Financial from $92.00 to $84.00 and set a “hold” rating on the stock in a research note on Thursday, January 29th. Wolfe Research initiated coverage on shares of Synchrony Financial in a report on Monday, December 8th. They issued an “outperform” rating and a $92.00 target price on the stock. BTIG Research dropped their target price on Synchrony Financial from $100.00 to $96.00 and set a “buy” rating on the stock in a research report on Tuesday, January 27th. Weiss Ratings reissued a “buy (b-)” rating on shares of Synchrony Financial in a report on Wednesday, January 21st. Finally, Keefe, Bruyette & Woods lifted their price target on Synchrony Financial from $95.00 to $98.00 and gave the company an “outperform” rating in a report on Friday, January 2nd. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Synchrony Financial currently has a consensus rating of “Moderate Buy” and an average price target of $87.11.

Synchrony Financial Company Profile

Synchrony Financial (NYSE: SYF) is a consumer financial services company that specializes in providing point-of-sale financing and private-label, co-branded and branded credit card programs. The company serves as a payments and lending partner to retailers, digital merchants and service providers, offering consumer financing solutions designed to drive customer engagement and sales. Synchrony also operates a direct bank that offers deposit products, including savings accounts and certificates of deposit, which support its funding and customer-facing product suite.

Its core product set includes private-label and co-branded credit cards, general-purpose credit cards, installment loan programs and promotional financing options that are integrated into merchants’ checkout experiences.